The Survival Podcast Forum

Finance and Economics => The Money Board => Topic started by: Blake_Culver on June 21, 2010, 09:55:31 AM

Title: Real estate ?
Post by: Blake_Culver on June 21, 2010, 09:55:31 AM
I bought a house 2 years ago. Even though I can afford the house I feel I made a mistake because I should have bought a cheaper house and saved some money. The house is in a new development and is on a small lake and I still owe 230,000
I put the house on and the problem I'm seeing is the builders are offers such great deals on new homes that I can't compete with it. I want to sell the house but I fear I won't be able to for the next few years. My question
is this. I was contacted by a local real estate investment company that said they would take over the mortage at what is owed on the home and make all the payments, taxes, and maintenance until they sell the housebut the catch is that they leave the mortgage in my name
when I asked them about it they said they would right a contract that says they will be responsible for the 230,000 no matter what. My understanding is that they will hold the house till the market comes back and the try to sell for profit but leaving in my name concerns me for a few obvious reasons. 1. Will I get screwed somehow in the long run. 2. Will I be able to get financing on another home when I already have a mortgage . I guess I'm asking has anyone had any experiance with this or even heard of it before. I want to lower my debt so I can roll the savings into paying off my student loans but I don't wanna be scammed thanks for the help
- Blake
Title: Re: Real estate ?
Post by: fndrbndr on June 21, 2010, 10:00:25 AM
I used to do a little bit of this kind of real estate investing. The investors always leave themselves a way out...their goal is maximum profit with minimum risk. Believe me, they will leave you with the risk.

I would list the house with a Realtor...or plan to stay a while.
Title: Re: Real estate ?
Post by: Blake_Culver on June 21, 2010, 10:07:14 AM
Thanks for the info. Unfortunatly I have talked to realtors and they all have said after paying realtor fees and everything I will be way upside down in the current market. My fear is that the market is just going to get worse but your right I may just have To ride it out
Title: Re: Real estate ?
Post by: tamo42 on June 21, 2010, 10:16:27 AM
Just so you know, this is called buying or selling subject to the existing financing.  The investor you're talking to is probably telling you what he or she believes, but you have to be aware that you are still responsible for the loan because it is in your name.  If the investor performs, you won't have anything to worry about.  If the investor doesn't perform, you'll have to foreclose/pay them to get out and make the underlying payments on your own (or accept being foreclosed upon).

In 99% of cases this will hamper your ability to get another loan down the road as long as the old one is open.